SB Financial Group Inc (SBFG) Reports 19.6% Decrease in Net Income for Q3 2023
SB Financial Group Inc (NASDAQ:SBFG) reported a 19.6% decrease in net income for Q3 2023 compared to the same period last year.
Interest income increased by 25.8% compared to Q3 2022, while noninterest income saw a 3.0% increase.
Total loans held for investment grew by 6.9% compared to the prior year.
The company's total assets slightly decreased from the linked quarter but were 1.8% higher compared to the prior year.
On November 2, 2023, SB Financial Group Inc (NASDAQ:SBFG) released its earnings report for the third quarter ended September 30, 2023. The company reported a decrease in net income by 19.6% compared to the same period last year. However, SBFG saw a significant increase in interest income by 25.8% and a modest increase in noninterest income by 3.0% compared to Q3 2022.
Financial Performance Highlights
The company's operating revenue for Q3 2023 was $13.7 million, a decrease of 5.3% compared to the same period last year. Despite the decrease in operating revenue, SBFG reported a significant increase in interest income, which rose by 25.8% to $14.8 million. However, the company's net interest income decreased by 8.6% to $9.5 million.
Noninterest income, which includes gains on the sale of mortgage loans and net loan servicing fees, increased by 3.0% to $4.2 million. Noninterest expense saw a slight increase of 0.9% to $10.5 million.
Loan and Deposit Balances
SBFG reported that total loans held for investment were up by $63.8 million or 6.9% compared to the prior year. The company's deposit balances remained level to the prior year at $1.09 billion but were higher compared to the linked quarter by $14.2 million.
Asset Quality and Equity
The company reported nonperforming assets totaling $4.0 million as of September 30, 2023, marking a decrease of $0.5 million or 12.1% from the same quarter last year. Total shareholders equity at September 30, 2023, was $112.3 million.
Company's Commentary
Mark A. Klein, Chairman, President, and CEO of SB Financial, commented on the company's performance, saying,
Funding costs continued to be headwinds for us in the quarter, however we are pleased that we were still able to grow our deposit base from the linked quarter, despite that higher cost. Our asset quality continued to be peer leading and our allowance percentage at 1.60 percent provides critical stability and strength as we move forward into a potentially tougher economic environment."
The full earnings report can be found on the GuruFocus website.
Explore the complete 8-K earnings release (here) from SB Financial Group Inc for further details.
This article first appeared on GuruFocus.
